In a year when smartphone shipments fell almost everywhere across the region, one brand grew by more than a third — building a position that now runs from Riyadh's malls to a factory floor outside Cairo.

KUWAIT CITY, Sept. 28, 2026 /PRNewswire/ -- There is a particular kind of result that tells you more than a good quarter does: growth in a market that is contracting. It strips away the usual explanations. Rising tides, seasonal demand, a category-wide upgrade cycle none of them apply when everyone else is moving backwards.

That is the position HONOR found itself in through 2026. According to Omdia, the Middle East smartphone market declined 13% year on year in the first half. HONOR grew 35%, the only leading brand in the region to grow at all, and moved into second place. The first quarter had already delivered 73% growth.

Understanding how it happened requires looking market by market, because the region behaved very differently depending on where you stood.

Winning the middle, market by market

The commercial engine was the mid-to-high-end. In the $300–500 price band, HONOR took a 24% share in the first quarter of 2026, growth of 130% year over year that put it within striking distance of Samsung in the segment.

Individual products did the work. The HONOR X9d is built around durability and battery life, a proposition that translates unusually well across the region's climate and became a top seller in both Saudi Arabia and the UAE. The HONOR 600 Series delivered double-digit growth in what the company calls the accessible flagship segment.

The UAE: premium proving ground

If Saudi Arabia is where HONOR proves scale, the UAE is increasingly where it proves premium.

The retail build-out has been deliberate. HONOR opened its first UAE Experience Store at Dubai Festival City Mall, followed by Abu Dhabi's first authorised experience store and service centre, then Al Reem Mall, and in January 2026 a store at BurJuman in Dubai.

That framing is the point. The UAE stores are designed to sell the ecosystem — laptops, tablets, wearables, connected devices — to a market with high disposable income, dense mall culture and consumers who will pay for premium when they can touch it first. In a country where the smartphone market itself is barely growing, ecosystem attachment is where the incremental revenue lives.

Saudi Arabia: scale and infrastructure

Saudi Arabia remains the anchor. HONOR is now the number one tablet brand in the Kingdom by market share, its AIoT business has grown more than 500%, and the HONOR Earbuds Clip alone has passed 100,000 units sold locally.

Behind that sits the big investment: a retail footprint growing to 25 HONOR Experience Stores, eleven of them inside shopping malls, supported by a new contact centre and 16 service centres. Service networks generate no headlines and take years to build. They are also what determines whether a consumer trusts a brand with a second purchase, a more expensive purchase, or an entirely new category — and HONOR has signalled that B2B push is coming to the Kingdom.

Saudi Arabia has also become a key stage for HONOR's technology ambitions. At LEAP 2026 in Riyadh, HONOR presented its ALPHA PLAN: From Vision to Reality, with the Robot Phone making its Middle East debut. The showcase brought together HONOR's vision for AI, robotics and intelligent devices, demonstrating its ambition to move beyond conventional smartphones.

LEAP also reinforced Saudi Arabia's role in HONOR's regional strategy, giving the company a major platform to bring its AI device ecosystem vision to one of the region's most important technology markets.

Egypt: from market to manufacturing base

The most structurally significant move, though, is happening in Egypt — and it has attracted the least attention.

HONOR is expanding its facility at 10th of Ramadan industrial city outside Cairo, its first industrial site anywhere outside China, toward an annual capacity of three million smartphones. The 8,000-square-metre site runs five production lines and two surface-mount technology lines.

The factory is not only about Egypt, as it is intended as an export base into Africa and the wider Arab world, lowering logistics costs, sidestepping import barriers and placing supply closer to the markets it serves. In a period defined by supply-chain fragility and component cost inflation, that is a meaningfully different kind of commitment from opening a showroom.

Building the AI Device Ecosystem

HONOR now describes itself as an AI device ecosystem company rather than a smartphone manufacturer, under a strategy it calls the ALPHA PLAN, a progression from intelligent phone, to intelligent ecosystem, to what it terms an intelligent world.

Its most visible proof point is the Robot Phone, which pairs on-device AI with an integrated robotic gimbal so the device can move, track a subject and respond to its surroundings rather than waiting to be instructed, with imaging developed alongside ARRI, a company that has spent more than a century in professional cinema. The wider roadmap extends to AI glasses, robotics and PCs.

The strategic argument is that intelligence is becoming commoditised in software, and the differentiation moves to hardware capable of sustaining it — battery density, thermal management, durability. In a region where heat and dust are operating conditions rather than edge cases, that argument lands more naturally than it might elsewhere.

The bigger story is that HONOR's regional expansion is no longer being driven by smartphones alone. From growing retail and ecosystem presence in Saudi Arabia and the UAE, to manufacturing in Egypt and a broader AI strategy showcased at LEAP, the company is building the infrastructure for its next phase. The question now is how far that momentum can extend as HONOR moves from being a fast-growing smartphone brand to becoming a broader AI device ecosystem across the Middle East and Africa.

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SOURCE HONOR